Profit-taking drags NGX into the red as MTN, Livestock Feeds lead decliners

Nigeria’s equities market closed lower on Tuesday, marking its first decline of the week, as investors cashed in on recent gains in heavyweight stocks such as MTN Nigeria. The selloffs redirected the market into negative territory amid a cautious trading environment.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) dipped by 0.18 percent, slipping from the previous session’s 106,116.18 points to 105,931.18 points. Similarly, the overall market capitalisation fell from N66.693 trillion to N66.577 trillion.

MTN Nigeria was the session’s biggest drag on the index. Its share price tumbled from N255.50 to N240, shedding N15.50 or 6.07 percent. Livestock Feeds followed closely, losing 83 kobo or 9.71 percent, as its share price dropped from N8.55 to N7.72.

United Capital’s research team, in a market briefing dated 28 April, noted that sentiment may remain tepid in the near term. “Looking ahead, the equities market may retain a cautious tone, influenced by the current high-interest-rate climate in the fixed-income space. We expect bearish undercurrents to persist,” the analysts said.

They also pointed to investor anticipation ahead of the Central Bank’s Monetary Policy Committee (MPC) meeting scheduled for May, suggesting this could further temper appetite for equities.

“At the same time, retail investors are locking in profits, prompting fresh waves of selloffs that hinder any sustained upward momentum,” the note added.

Despite the downturn, trading activity remained brisk. A total of 733,051,521 shares worth N35.288 billion were exchanged across 16,619 deals. Stocks of Fidelity Bank, MTN Nigeria, Access Holdings, GTCO and Universal Insurance were among the most actively traded during the session